3 ways international resources can help you scale

July 7, 2011 6:00 AMChad Walter

(Editor’s note: Chad Walter is VP of Operations for Chile-IT. He submitted this story to VentureBeat.)

As companies start to incorporate technology into everyday practice, distance no longer prevents U.S. businesses from recruiting international vendors to help with sales, development and IT efforts. Despite this reality, there are still a lot of misconceptions about outsourcing and it’s benefits for U.S. businesses.

The emergence of new global IT hubs – particularly those in Latin American countries like Chile, Brazil and Argentina – has redefined the model for outsourcing and what it can bring to the table. However, most U.S. businesses are skeptical or unaware of the benefits of incorporating international IT companies in their business models.

With IT spending expected to reach $3.6 trillion this year, businesses can look to vendor specialists based outside of the U.S. for support as they grow and expand IT efforts. This approach is especially important for small- and medium-sized businesses (SMBs) that want to effectively compete with the bigger players in their respective markets.

Need more convincing? Here are three reasons why U.S. businesses seeking to scale up should consider international partners for support:

Tap into talent and resources – U.S. businesses can leverage talent and resources with international providers. For example, Chile is home to more than 500 IT companies and the country’s university degrees in IT and the number of IT students – currently 55,000 – have the highest growth rate against other education areas. U.S. businesses can tap into the kind of talent and resources that come with a thriving international IT community focused on building relationships with U.S. companies.

Break into new markets – International providers are a gateway for U.S. businesses looking to expand their activities beyond their borders. As a result, U.S. businesses can create relationships with companies in another country to facilitate new opportunities and prospective customers for themselves, and gain a foothold in markets that would otherwise be out of reach.

Along the way, they gain the established customer and partner base, linguistic and cultural savvy that international providers offer.

It’s especially important to break into developed and economically thriving markets. Chile, for instance, is predicted to become the first developed country in Latin America according to Mexico’s business mogul and world’s richest man, Carlos Slim.

Capitalize on Interest in Investment – U.S.-based venture capital firms are increasingly looking abroad for investment opportunities. Additionally, foreign countries are working with local businesses and investors to attract new start-ups.

This creates a scenario for some companies where it would be easier to scale up outside the U.S. than at home. In fact, organizations like Start-Up Chile are actually providing incentives for small businesses to relocate to that country and have already been successful providing an alternative destination for companies that would normally move to Silicon Valley or other entrepreneurial hubs as they start to grow.

Resources are everywhere today. Outsourcing parts of your business is not only a matter of convenience, but also an investment with long-term benefits if you choose to extend to international soil. The process may have its detractors, but it’s one of the best ways to scale and reach maximum revenue growth potential.